The official Security Overview documentation is a good starting point to get a picture what's possible with iOS SDK.
Have a look at CryptoExercise, an Apple iOS example app:
This sample demonstrates the use of
the two main Cryptographic API sets on
the iPhone OS SDK. Asymmetric Key
Encryption and random nonce generation
is handled through the Security
framework API set, whereas, Symmetric
Key Encryption and Digest generation
is handled by the CommonCrypto API
set. The CryptoExercise sample brings
both of these APIs together through a
network service, discoverable via
Bonjour, that performs a "dummy"
cryptographic protocol between devices
found on the same subnet.
answered 2011-06-08T09:32:10.437